Gold price retreat from two-week highs today as China central bank step in to support the battered Chinese economy. The central bank of China cut the reverse repo rates by 10 basis points and injected $173.0 billion of liquidity.
The World Health Organization declared a global health emergency last week as the coronavirus spread to 23 countries. The Philippines reported the first coronavirus death outside of mainland China. Now there are more than 17,300 confirmed coronavirus cases worldwide, and the death toll has reached 361.
Gold price is 0.85% lower at $1576.30 as the US dollar started stronger today. Investors the previous week shift their attention to safe-haven assets amid the coronavirus outbreak. Coronavirus turbulence in the global markets is gold positive.
Gold price positive momentum which started from January 14th is intact despite today’s correction. The technical outlook is bullish for the precious metal as gold makes higher and higher lows in the last two weeks.
On the downside, immediate support will be met at $1573 the daily low. Next support level for gold price stands at 1563 the low from January 29th. If gold price breaks below that level sellers will target the low from January 21st low at $1,546.
On the upside, the immediate hurdle for gold price stands at $1593 the daily high. A break above that level would open the way for the next resistance at $1611 the high from January 8th.